Fundraising in China
In one of the fastest growing economies in the world, China, fundraising has always been an important issue for local and foreign companies to expand their operations. In contrast to the West, however, this is a much more challenging undertaking in the Middle Kingdom and requires a lot of attention. To make fundraising successful, it is necessary to build a solid base with all relevant social classes, but cultural barriers make it difficult. The focus is therefore on the relationship with all stakeholders - those who show interest, empathy and care are successful.
Nowadays, online presence is essential for every company. If you are planning to enter the Chinese market, one of the most important points of your marketing strategy should be the creation of your own website, which focuses primarily on the Chinese consumer - usability and user experience are the be-all and end-all of your website. In addition, personal branding is the marketing practice that enables people to market themselves and their careers as their own brand. Personality and authenticity should be expressed, despite the orientation towards the end customer. The best way to create your personal branding and thereby come closer to your goals in China is communication via social media. This is where WeChat, the most widespread social network in the Far East, comes in. While it resembles Facebook optically, the range of functions represents a completely new form of information and communication platform. Due to the density of networking with other services, all everyday scenarios can be played on the platform, be it booking a hotel room, buying cinema tickets, paying the electricity bill or that of the telephone, booking a table in a restaurant, and much more. Companies can create an official account or a WeChat e-brochure to reach users. The WeChat account then enables subscription by users of social networks.
Fundraising agencies specializing in the Chinese market with a correspondingly large network are offering an opportunity to establish initial contacts with potential investors. Against payment, these companies support the creation of the website, the development of social media channels, the development of roadshows (meetings with local investors at various meeting points) and also help with negotiations by preparing for cultural differences. There is no question that this process takes a lot of time, which is why the costs are very high. The success of fundraising cannot be guaranteed though.
Conferences to find investors
Partnering conferences (such as the DxPx conference) are particularly suitable for international participants in order to establish personal contact with potential investors. Participants from different sectors (Startups, VCs, Business Angels) meet here with the same goal: to exchange ideas about possible partnerships. Here the risk is particularly low and the costs for participation manageable, with a relatively high success factor. However, one should be aware that the Partnering Conference is only the first step to get to know potential partners. Others with correspondingly high personal commitment follow, until a successful investment can be made.
In conclusion, in order to achieve the goal of 'fundraising in China', you always need access to gatekeepers who know the country and understand its business culture. These can be external companies or partners of their own, who help to develop the right strategy and take an active role in the negotiations. The preparation for the cultural and also legal differences between the West and China should be done with all commitment in order to create the most favourable framework conditions so that the own company becomes visible on the external market.
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